TAX-RETURN SCHEME TARGETING RETIREES

IRS warns of offers touting bogus refunds

Retirees should beware of a new scheme in which they are tempted by unscrupulous people to file federal tax returns claiming fraudulent refunds, said Internal Revenue Service spokesman Raphael Tulino.

The scheme involves people promising refunds to people who made little or no money and who wouldn’t usually file a return, according to an IRS statement.

“Promoters claim they can obtain for their victims, often senior citizens, a tax refund or nonexistent stimulus payment based on the American Opportunity Tax Credit, even if the victim was not enrolled in or paying for college,” the IRS warned.

Sometimes con artists tell people they can claim the money even though they went to school decades ago. In other cases, some people are falsely told they can claim the college tuition credit because they’ve paid taxes on groceries.

Bogus refund claims have been identified from California, Georgia, Michigan, Louisiana, Alabama and Indiana. Recently, the tax agency has been able to stop thousands of the bogus refunds checks.

Promoters may charge exorbitant upfront fees to file these claims. “When victims’ claims are rejected, their money and the promoters are long gone,” Tulino said.

The IRS is reminding people to be careful because all taxpayers, including those who use paid tax preparers, are legally responsible for the accuracy of their returns, and must repay any refunds received in error.